LED Grow Lights Market to Grow by USD 11.32 Billion (2024-2028)

The global light-emitting diode (LED) grow lights market  size is estimated to grow by USD 11.32 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 39.04%  during the forecast period.  

The urban population's shifting dietary preferences towards fresh produce and the rise of urban agriculture have fueled the demand for advanced farming techniques. Rooftop greenhouses, which utilize hydroponics and aeroponics methods and do not require farmlands or open spaces, have emerged as a promising solution. These innovative farming methods have led to the development of zero-acreage farming, which is gaining popularity in urban areas due to limited land availability.

To increase efficiency and productivity, greenhouse automation through the use of robots in harvesting and packing processes is on the rise. Startups, such as BrightFarms in the US, are leading the way in this technological advancement, having raised over USD200 million in funding and partnering with major retailers like Ahold Delhaize, Kroger, and Walmart. These collaborations are expected to significantly contribute to the growth of the global LED grow lights market, as these advanced farming techniques rely heavily on energy-efficient LED lighting for optimal plant growth.

The global LED grow light market is experiencing significant growth due to the increasing trend towards indoor farms, greenhouses, and vertical farms for sustainable agriculture. These agricultural techniques require controlled environments with optimal light conditions for plant growth. Traditional lighting sources like fluorescent lights, incandescent lamps, and High Intensity Discharge (HID) are being replaced by energy-efficient LED grow lights. LED technology offers customizable spectrum and light intensity, which is essential for photosynthesis and crop yield. With food insecurity and urbanization leading to a decrease in arable land, LED grow lights are becoming increasingly important for commercial greenhouses and hydroponic systems. LEDs consume less electricity compared to traditional lighting, making them an economical choice for indoor gardening and research purposes. The market for LED grow lights includes new installations and retrofits, with smart LED and WiFi lighting gaining popularity for their environmental factors and ease of use. Additionally, LED grow lights are used in turf and landscaping and have applications in environmental research.